Malaysia Service Outsourcing Industry

Malaysia is one of major global services outsourcing destinations and it is known in providing outsourcing in the areas of Business Process Outsourcing, System Integration and IT consulting services.   Government, Finance Services Industry and manufacturing remain the major services to be explored.  According to the consultant firm A.T. Kearneyfs 2011 Global Services Location Index, Malaysia was ranked as third most popular destination, after India and China, for services outsourcing. Using 39 measurements in three categories, namely economic attraction, people skills and business environment, the ranking analyzes the top 50 service locations worldwide.

The continuing growth of outsourcing is basically driven by ability to maintain high-end and high-value services.  Business environment advantages provide a key sustainability for cost-effective and value-oriented services.  Governmental policy that continues to promote the industry, such as enhancing world-class IT infrastructure in Multimedia Super Corridor and Cybercities, provide investment incentives to foreign enterprises, human resources development, strengthening commands of English language and technology among the population in order for Malaysia to maintain as one of global preferred services outsourcing destinations.

The global logistics company DHL had setup a regional IT center in Cyberjaya that covers Asia Pacific operations.  This is one of three data centers run by DHL worldwide.  The Dutch Shell Group having itfs IT support center in Cyberjaya to provide desktop support services, engineering and development services to Shell companies worldwide.  HP is running a data center in Cyberjaya and Petaling Jaya. The company said that part of its drive to open the newer center in Cyberjaya was to support local clients, including DHL and Western Digital.


Shell Global IT Support Center


DHL Asia Pacific Information Service


HP Global Center

Other corporations like ACS, BMW, HSBC, IBM, Intel, Motorola, Nokia, Unisys, Fujitsu, EDS, CSC and many others have setup their bases of regional and global operation in Malaysia.  To date, there are over 130 Shared Services & Outsourcing companies in Malaysia ranging from major local players to MNCs. Malaysia is also the home for 250 call centers. 


BMW Asia Technology Center


ACS Regional Office


HSBC Electronic Processing Center

Malaysia is an ideal location for most offshore activities ranging from the back office operations to upstream activities such as research, design and development to downstream activities such as marketing.  The main element to attract blue-chip roster of companies is a stable government, a highly skilled talent pool and competitive costs.  The country enjoys low inflation, low staff attrition and high levels of foreign universities graduates returns.


Intel Asia Pacific Headquarter

AMD Global Center

NTT Data Center




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